SECTION 1. Section 4 of chapter 157B of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by inserting after the definition of “by-laws” the following definition:-
“Community of interest”, a cooperative corporation or corporation organized as a cooperative under the general laws for the purpose of providing or furnishing residential housing for a communal purpose; provided however, that a statement of communal purpose, in sufficient detail so that a reasonable person may understand such purpose, shall be included in the original articles of organization of such corporation or added to the articles of such corporation as set forth in subsection (g) of section 10 by amendment approved by 60 per cent of the stockholders.
SECTION 2. Section 10 of chapter 157B, as so appearing, is hereby amended by striking out subsection (g) and inserting in place thereof the following subsection:-
(g) standards for eligibility to become a stockholder, provided that such standards reasonably relate to: (1) the capacity to satisfy the stockholder’s financial and maintenance obligations with respect to the property; (2) the creation of the housing cooperative as a community of interest, provided however, that a detailed statement of the communal purpose and eligibility standards of the community of interest shall be contained within the articles of organization of the corporation; and/or (3) standards as a provider of affordable housing. Such standards for eligibility shall not be discriminatory under law. Denial of a party seeking to become a stockholder shall be in writing, and denial shall include the grounds for denial and specify which eligibility standards the stockholder applicant failed to meet. This act shall govern cooperative housing arrangements formed under this chapter or otherwise.
SECTION 3. Within 90 days of the effective date of this act, the state secretary shall send written notice to each corporation organized under chapters 156D or 157B of the requirement for it to file, as applicable, articles of organization that contain the information required in paragraph (2) of subsection (g) of section 10 of chapter 157B of the General Laws.
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